THE CLOSE

Markets closed near the highs as some sellers tried to shake out the bulls about 3o minutes before the close - but as usual to no avail.

The SPX closed flat, NAZ +1.6 and the DJIA +32.

Strong sectors- materials, semis, homies, metals and tech while real estate, banks, brokers and drugs lagged.

NYSE- flat inernals;

NAZ- 450 net losers;

SPX 203 GREEN;

NDX 53 GREEN;

VIX- lower by 4% at 24.34 and about 12% below the SMA 10;

TRIN- 1.32 with down volume a bit more than up on 1.3b shares.

Looking for lower prices next week as we are way over bought and due for a decent pull back- RSI 2 levels as follows:

SPX 96

DJIA 99

RUT 77

NAZ 99

NDX 99

Those levels on the NAZ/NDX are pretty unsustainable and a short for next week is probably ALMOST a sure bet-

ZERO HEDGE on GS;

The real issue at CNBC Bartiromo V Burnett;

An interesting case for Natty gas;

MORNING CHOP

Markets are flopping around fairly aimlessly this morning as the recent ramp higher is being digested nicely. The SPX is -5, NAZ -9 and the DJIA -12.

Strongest sectors- ags, homies, oil service, biotech and retail while real estate, banks, fins and semi lag.

NYSE- 600 net losers;

NAZ- 700 net losers;

SPX 135 GREEN;

NDX- 24 GREEN;

VIX - down 2% at 24.95;

TRIN- 1.04- down volume about 2x the up;

Not much conviction either way so just watching for now- although a ramp higher at the end of day is what I am thinking- all internals though pointing the other way.

THE GOOG

Markets closed a bit off their best levels and are lower in the after market as GOOG did not live up to the numbers- GOOG trading at $428 as I type which is down about $18 from the 4.00 o'clock close.

The SPX closed +8, NAZ +22 and the DJIA +96.

Strongest sectors - materials, biotech, trannies, internets, semis homies and small caps while retail, ags, brokers and telecom lagged.

NDX- 76 GREEN;

SPX- 369 GREEN;

VIX lower by 2% at 25.4 and about 10% under the SMA 10;

TRIN- 1.38 with up volume a little better than 1.5x the down- with almost 1.2B shares traded.

Thinking the markets have a little problem moving higher from here as good earnings numbers now seem to be baked into profits- in addition - markets way over bought and due for a drop as RSI now at/near 98 on most major indexes-

Also expecting to see tech lag - since it has now had a very nice run - and maybe some energy to lead as Nat gas finally had a good day- and I suspect that will continue- these commodity pricing won't go to zero nor will they go bankrupt any time soon.

THE CHASE

Pre Market futures are trading near the flat line 2.5 hours before the open - but were down quite a bit before the big JPM numbers hit the wires - and they impressed everyone - who would have thought they would have good number?

ES +.25;

NQ -.5;

YM +12;

Crude, gold and the dollar all near the unchanged line.

Dr. Brett looking at strong mo;

Who would have thought Plastic shoes wouldn't make it;

Strong trend day signals?;

Trump- lawsuit adios;

Jon Stewart nails it with Kramer;

And Sir Paul on the roof;

THE DOUBTER

Markets did what they usually do on day like this -close at/near the highs with the SPX +27, NAZ +63 and the DJIA +257.

Strongest sectors- Brazil, materials, metals, semis, homies, banks and techs while bonds, drugs, junk, retail and trannies lagged.

NYSE- 2450 net green;

NAZ- 1700 net green;

SPX - 477 GREEN;

NDX- 94 GREEN;

VIX - higher by 3% at 25.9- VERY STRANGE;

TRIN- .35- with up volume about 25x the down and heavy at 1.4b shares.

Everyone asking if the rally has legs- - prediction from this fish -- SPX 899 before SPX 1075- out on the limb-

Markets over bought and way so - try to take some off before the week ends as the jobs number is coming up and we are bound to have some ugly earnings numbers- and of course talk of health care and another stimulus- straight up highly doubtful.

QUICK TAKE

Markets are soaring on the heels of good news last night from the tech sector (INTC) - in addition markets are very over bought - just check out the RSI 2 area on most major indexes - yes -97/98.

Strong sectors- metals, materials, semis, homies, oil service, energy and tech while drugs, bonds, biotech and brokers lag.

NYSE-2100 net green;

NAZ- 1500 net green;

NDX- 88 GREEN;

SPX- 443 GREEN;

VIX- down 3.5% at 24.15 and about 15% below the SMA 10;

TRIN- .88 with up volume about 8x the down;

I would be buying pullbacks today for a quick flip for a close at/near the highs - but buying and holding - I doubt a good strategy for more than a few days or a week.

Remember- folks are now excited about a turn in the economy- be careful as I bet we get some lousy earnings numbers and probably a lousy employment number in a couple of weeks- that is what caused the last sell down and it will probably happen again.

MIDDAY CHECK

Markets have flipped back to green after filling all kinds of gaps - and the TICKS - very high TICKS in the last few moments which I see some very good traders are fading- my theory - buy the pullbacks today instead of fading the high ticks.

Strong sectors- materials, metals, energy, retail and trannies while telecom, ags, banks, biotech and brokers lag.

NYSE-800 net winners;

NAZ- 200 net green;

SPX 310 green;

NDX - 65 green;

VIX- down 2% at 25.7;

NYSE Volume - up about 2x the down;

Crude and gold up a bit.

Markets have gone straight up the last hour and I am looking for pull backs - SSO QLD- not much more to type- just seems like a buy the dip day to this fish.

THE OVERBOUGHT GAP

Equity futures are trading higher this morning but well off their best levels as the GS number beat expectations but probably not by enough.





ES +4.5;


NQ +3.5;


YM +41;


TF+1.7;





My guess is the markets get sold this morning on the news as it is turnaround Tuesday- and we are overbought with RSI 2 numbers near 90 on the major indexes before the open- so a filling of the gap probably the first order of business.



And been bad with the links of late so here goes:

Mort on 10 reasons employment is lots worse than we think;

Not a Cubs fan - but this is a bit surprising;

Here's Sarah;

And destroying CIT;

CLOSING RAMP

As it typical on up days- the markets closed at/near their highs of the session with the SPX +22, NAZ +37 and the DJIA +185.

Strongest sectors- banks, financials, reits, real estate, brokers and materials while ags, trannies, biotech and telecom lagged.

NYSE- 2000 net winners;

NAZ- 1000 net winners;

NDX- 80 GREEN;

SPX- 454 GREEN;

VIX- lower by almost 10% at/near 26.2- and trading about 7% below the SMA 10;

TRIN- .42 as up volume was almost 10x the down;

Markets a little over bought here with RSI 2 readings near 90 on most major indexes;

Looking for some selling as the earnings get reported as it appears markets have now run ahead of the big financial number expected tomorrow-

EARLY LAUNCH

Markets took off to the upside a little before I expected as the SPX 875 level was again the number to watch-

Strongest sectors- financials, banks, reits, brokers and retail while commodities, energy, trannies and metals lag.

NYSE- 1500 net green;

NAZ- 600 net green;

SPX - 440 GREEN;

NDX 80 GREEN;

VIX- down 8% at 26.75;

NYSE Volume about 5/1 green and the TRIN at .7;

Hoping for the markets to dip as this ramp came a bit before I expected- still bullish and hoping to buy lower.

THE OPEN

Markets are off to an unpretty start this morning as the market have flipped to red despite all the bullish commentary this morning by Whitney.

The SPX -3.5, NAZ -18 and the DJIA -12.

NYSE - 1000 net red;

NAZ - 850 net red;

SPX 115 GREEN;

NDX- 9 GREEN;

VIX- slightly higher at 29.17;

Commodities all generally lower with oil getting hammered at $58.5 and gold down at $908.

Nat gas heading to the $3 level as that commodity becomes fairly worthless.

My guess is we get some buying later in the day as folks saw the Whitney ramp as a way to make a quick buck by fading her- Markets also looking at support levels at the 870/875 levels - so there it is.